Economic Aspects of Railroad Receiverships (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1898 Excerpt: ...revenue could be gained from its operation without very greatly increasing the expense that would be necessary merely to preserve the property from destruction. But even more than this, a large element in the value of a railroad consists of the patronage it has secured both in the way of miscellaneous traffic and of definite contracts with private shippers and with the post-office department and express companies. All this is likely to be forfeited and the value of the property depreciated if operations are suspended. In many instances, also, the retention of the franchise depends on the continuous operation of the road. For these and perhaps other reasons the courts have commonly authorized receivers of railroads either to operate the roads themselves or, less frequently, to provide for their operation by leasing them to an operating company.1 If the railroad has been an independent one, the receiver is commonly authorized to operate it; if it has been previously leased by another company, the receiver is likely to be authorized to arrange with the 1 For instance, of 192 roads in the hands of receivers, June 30, 1894, 137 were operated independently by the receivers, five were leased by the receivers to operating companies, five were not in operation at all, and the remainder were operated by the receivers of systems of which they formed a part. Of 169 roads in the hands of receivers, June 30, 1895, 136 were operated by independent receivers, eight were leased by the receivers to operating companies, four were not in operation, and twenty-one were parts of systems in receiverships. Of 151 roads in the hands of receivers, June 30, 1896, 128 were operated by their receivers, three were leased to operating companies, fourteen were operated by the receivers of...